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The bank changes its deposit policy and opens its best offers to existing customers

Date: June 19, 2024 Time: 14:34:22

In recent weeks, the deposit market activity has been ‘in crescendo’. The latest modifications and releases of MyInvestor have been joined last week by ING. The Dutch bank launched a three-month deposit with a yield of 2.5% which, although it lags behind the official eurozone rates, represents the first move by a long-standing financial institution in the savings war and a turn in policy : the entity’s clients can contract it and this is a twist in the strategy. Because both the neobank’s fixed-term deposits and those of ING are aimed without distinction at new and old clients and could be anticipating a change of scenery after the summer in a more general way.

And it is that the entities have June 28 marked on the calendar, when European banks must return almost 500,000 million euros of liquidity injections made by the European Central Bank (ECB) through the TLTROS. The end of the ‘free bar’ could reduce liquidity in banks that hide behind not increasing what they pay for deposits and gradually opening the market, which would force those who have not participated up to now to launch offers to not lose customers and balances.

From the sector it is recognized that it will mean a first drain on liquidity, but they remember that there would still be two more windows left. Even so, it did show that there may already be small upward movements when it comes to remunerating deposits, but focused on retaining existing customers, which is why these latest commercial offers are also aimed at this group.

“The remuneration of the deposits remained mainly, what the competition does and how the clients behave,” says Javier Mezcua, an expert at HelpMyCash. Unless a considerable number of the clients of these entities move their savings to other banks that pay more, the big banks will not have the need to improve the profitability of their savings products.

Avoid losing customers

Financial sources recall that in recent months the Bank has made an effort to capture payrolls, with very juicy offers in which they combine both a high remuneration (of 5% for Bankinter, Openbank or Caixabank) and a gift of cash (up to 350 euros pay Banco Santander for regular income). They also explain that while they will not need to capture passives, they will continue to focus on the old ones.

In addition, this adds to the fact that the first revaluation of credit has taken place in this first cycle of interest rate rises, since interest rates began to rise in July of last year. This increase in the cost of mortgage loans would give banks room to improve deposits without prejudice to their margins. “If we offer interesting products to existing customers, they can prevent them from taking their money to other banks while gaining new customers,” adds Javier Mezcua, finance expert at HelpMyCash. .

What the experts do hope is that the new offers continue to play with both sides. In the case of ING, the surprise is that it is now also available to newcomers, although in this case the explanation is simple: it not only seeks to attract external resources, but it is also a commercial hook to attract new customers. “A practice that, for example, he has also done with his Orange Account, first by expanding its use for clients without a payroll and later improving profitability for both clients and non-customers,” they point out from Kelisto. In addition, the bank has four million customers and its brand is widely accepted by the public.

It would be the same path that Openbank has followed with its 12-month deposit that it currently sells and that offers a return of 2.75% over one year if periodic income of 600 euros per month is domiciled. Here the objective was not so much to attract new clients, but also a new balance, since the import to be subscribed should coincide with the increase in the average balance of the client in the firm of the Banco Santander group.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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